MRL3701 Assignment 2 2025 – Due 13 May 2025

MRL3701
Assessment 1
OPENS FOR SUBMISSION: 6 May 2025
DUE DATE: 13 May 2025

QUESTION:
Kabelo’s estate was sequestrated in 2021 and he has not yet been rehabilitated. Dennis was
appointed as the trustee of the insolvent estate. The assets in Kabelo’s estate were insufficient
to cover the sequestration costs. As a result, all his creditors had to pay a contribution and the
concurrent creditors did not receive dividends.

Kabelo recently won a motor vehicle worth R200 000 in a competition which was run by the
Mall of South Africa. When Dennis heard of the news, he claimed delivery of the car. Kabelo
really likes the car and wants to keep the car.

Kabelo comes to you for advice. He wants to know whether he has to deliver the car to the
trustee or if there are ways he could keep the car. By referring to relevant legislation, advise
Kabelo.

ANSWER

In terms of section 20(1)(a) of the Insolvency Act 24 of 1936

The effect of sequestration is that the insolvent is divested of their estate and the estate vests
in the Master of the High Court and, subsequently, in the trustee upon their appointment¹. This
means that all property of the insolvent at the date of sequestration, as well as any property
acquired by the insolvent during insolvency, forms part of the insolvent estate².